Bitcoin price has extended its decline below the $ 54,000 level against the US dollar. BTC holds the $ 52,500 support but needs to release $ 54,000 for a new increase.
- Bitcoin didn’t stay above the USD 54,000 support and prolonged its decline.
- The price is now facing resistance near $ 54,000 and the 100-hour simple moving average.
- A heavily bearish channel is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 54,000.
- The pair could either rise above $ 54,000 or extend its decline to $ 50,000.
Bitcoin price faces hurdles
Bitcoin struggled to keep rising above $ 55,000 and a new decline began. BTC has broken the USD 54,000 and USD 53,500 support levels.
There was also a closing price below the $ 54,000 level and the 100 hour simple moving average. The price tested the USD 52,500 support zone. A low is formed near $ 52,375 and the price is now consolidating losses. It rebounded above the $ 53,200 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $ 56,545 swing high to the $ 52,375 low. It appears the price is now facing resistance near $ 54,000 and the 100-hour simple moving average.
Source: BTCUSD on TradingView.com
A heavily bearish channel is also forming on the hourly chart of the BTC / USD pair with resistance near USD 54,000. The next major resistance is near the $ 54,500 level. It is near the 50% Fib retracement level of the downward move from the $ 56,545 swing high to the $ 52,375 low.
A successful break above the channel resistance and then a break above the $ 54,500 level could set the pace for a renewed spike to the $ 56,500 level. The next major resistance above $ 56,500 could be $ 58,000.
More losses at BTC?
If Bitcoin doesn’t remove the $ 54,000 resistance and 100-hour SMA, it risks other downsides. Initial support on the downside is near the $ 52,500 level.
A proper break and a close below the $ 52,500 level should set the pace for another 5% decline. In that case, the price could fall towards the USD 50,000 support zone in the short term.
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD rises to the 50 level.
Major Support Levels – $ 52,500, followed by $ 50,000.
Main Resistance Levels – $ 54,000, $ 54,500, and $ 56,500.